Bank of America [BAC 12.92 -0.21 (-1.6%) ]shares were lower this morning on disappointing earnings. But a bad quarter may be the least of the bank’s worries.
The largest bank by deposits just lost its chief financial officer and just hired one of the most connected regulatory lawyers in the U.S.
Both events are alarming.
The bank says that Charles Noski requested to step aside due to family illness. There’s no doubt some truth in this: a family member is ill, and Noski probably volunteered his resignation. But it comes on the back of some very troubling developments:
- Earlier this month we learned that Bank of America’s announcement that the government had denied its insane request to raise its dividend had not been reviewed by Noski before it was made public. No one has offered a credible explanation for this lapse in internal controls.